Rachel Siegel

Meeting minutes released Wednesday offer a fuller picture of why the Fed raised rates by half a percentage point earlier this month.

Inflation tests Fed credibility and rate hike decision - The Washington Post

Just three months ago, the Federal Reserve chief described a three-quarter point hike as “unusually large.” The third one of the year is expected this week.

To help curb inflation, the Fed raises its benchmark interest rate, which makes mortgages and other loans more expensive. Over time, this helps supply and demand sync up.

The Fed hiked rates by 0.75 percentage points for the fourth time this year, as officials believe letting inflation persist would be worse than an economic downturn.

High gas and housing costs continue to muddle policymakers’ fight to slow the economy and tame consumer prices.

The move leaves the Fed’s baseline policy rate between 5.25 and 5.5 percent. That’s the highest in 22 years.

Officials still have more work to do to tame consumer prices, even though increases are down from last year’s record highs.

While other cities worry about a glut of office space as workers resist returning to the familiar 9-to-5 grind, Austin’s challenges are Texas-sized.

The Federal Reserve chief talks about the road ahead bringing inflation down in a strong economy.